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About 150 General Motors Co. dealers have decided to part ways with Cadillac, rather than invest in the expensive upgrades needed to sell electric cars, according to people familiar with the plans, indicating some retailers are skeptical of the plans. the idea of switching to battery-powered vehicles.
GM recently gave Cadillac dealers the choice: either accept a buyout offer to leave the brand or spend about $ 200,000 on dealer upgrades – including charging stations and repair tools – to prepare their stores for. sell electric vehicles, the people said.
The buyout offers ranged from around $ 300,000 to over $ 1 million, people close to the effort added. About 17% of Cadillac’s 880 U.S. dealers have agreed to take the offer to end their franchise contracts for the luxury brand, the people said.
The buybacks are an early sign of impending changes for car dealerships as traditional automakers aggressively turn to electric vehicles.
Auto retailers will face some upfront costs, such as electrical upgrades in stores and heavy elevators in the service department to hoist electric cars, which are typically heavier than gasoline vehicles due to their large battery packs.
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